The Soft Company has provided the following information after year-end adjustments. Allowance for doubtful accounts was $11,000 at the beginning of the year and $30,000 at the end of the year. Accounts receivable were $80,000 at the beginning of the year and $420,000 at the end of the year. Accounts written off as uncollectible totaled $20,000. Net sales totaled $2,700,000. Sales discounts were $100,000 What was the amount of Soft's bad debt expense for the year?
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
The Soft Company has provided the following information after year-end adjustments.
- Allowance for doubtful accounts was $11,000 at the beginning of the year and $30,000 at the end of the year.
Accounts receivable were $80,000 at the beginning of the year and $420,000 at the end of the year.- Accounts written off as uncollectible totaled $20,000.
- Net sales totaled $2,700,000.
- Sales discounts were $100,000
What was the amount of Soft's
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